What is a Hire Purchase?

 
Commercial Hire Purchase (also known as a Commercial HP, or a CHP) is a finance product that assists a business or an individual that needs to upgrade or acquire a new car or a  used car or business equipment.

Unlike a lease, you are free to use a deposit or trade in to reduce the amount you finance using a hire purchase.  Use our car FAST QUOTE loan calculator to see how deposits and balloons can change the loan repayment.

Using a Hire Purchase agreement, you do not own the car until monies owed under the agreement, including the balloon payment are paid.

You may be able to claim a tax deduction for the depreciation and the interest component of the loan. GST is not payable on the Commercial Hire Purchase repayments, or on the balloon payment.

Benefits:

• Hire Purchase repayments are fixed for the duration of the loan
• You can use a balloon to reduce your repayments, or pay the loan off in full
• Deposits are generally not required
• Repayments can be set up on a monthly, quarterly or season basis
  

Hire purchase duration can be between 12 months to 60 months.